The Military Creation Act was a bill proposed in the Galactic Senate during the Separatist Crisis that would have allowed the Galactic Republic to form an army to combat and defend against the Confederacy of Independent Systems, a group of star systems that had broken away from the Republic. The legislation was opposed by Senator Padmé Amidala and other senators who had formed the Loyalist Committee. As the threat of the Separatists grew more pronounced to the Senate, Junior Representative Jar Jar Binks proposed that Supreme Chancellor Sheev Palpatine be given emergency powers to raise an army on his own. The Emergency Powers Act passed, and the Republic adopted the clone troopers created on Kamino as the Grand Army of the Republic, leading to the Clone Wars and, eventually, the rise of the Galactic Empire.
The consequences of this motion were immediate. New star systems declared their independence, reluctant to pay more taxes to finance this army. Others announced that they would not abandon their own armed forces in favor of the eventual Republic Army. The Corellia system, one of the founding systems of the Galactic Republic, even closed its borders, but without declaring its independence.
Honor Salima, the commander of the Coruscant Home Defense Fleet, was given access to upgraded technology made available to her through the act.